| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 1. GeneralAllianz Saudi Fransi Cooperative Insurance Company (a Joint Stock Company incorporated in the Kingdom of Saudi Arabia), the “Company”, was formed pursuant to Royal Decree number 60/M dated 18 Ramadan 1427H (corresponding to 11 October 2006). The Company operates under Commercial Registration number 1010235601 dated 26 Jumada Thani 1428H corresponding to 12 July 2007. The Company operates through its eight branches in the Kingdom of Saudi Arabia. The registered address of the Company's head office is as follows:Allianz Saudi Fransi Cooperative Insurance CompanyAl Safwa Commercial Building, Khurais RoadP.O. Box 3540Riyadh 11481, Kingdom of Saudi Arabia.The Company’s ultimate parent is Allianz SE, a European financial services company headquartered in Munich, Germany.The purpose of the Company is to transact cooperative insurance operations and all related activities. Its principal lines of business include Medical, Protection and saving, Motor, Engineering, Property and Other general insurance.On 31 July 2003, corresponding to 2 Jumada II 1424H, the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). During March 2008, the Saudi Arabian Monetary Authority (“SAMA”), as the principal authority responsible for the application and administration of the Insurance Law and its Implementing Regulations, granted the Company a license to transact insurance activities in the Kingdom of Saudi Arabia.On 1 January 2016, the Company’s management approved the distribution of the surplus from insurance operations in accordance with the Implementing Regulations issued by SAMA, whereby the shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising on insurance operations is transferred to the shareholders’ operations in full.Seasonality of operationsThe Company operates in an industry where significant seasonal or cyclical variations in operating income are experienced during the financial year. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2. Basis of preparation(a) Basis of presentationThe interim condensed financial statements of the Company as at and for the period ended 30 September 2020 has been prepared in accordance with International Accounting Standard 34 – “Interim Financial Reporting” (“IAS 34”), that is endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Certified Public Accountants (“SOCPA”).The interim condensed financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of available-for-sale investments, financial assets at fair value through statement of income (unit linked investments) and recording of end of service benefits at present value under actuarial method. The Company’s interim statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as non-current: available for sale investments, property and equipment, statutory deposit, accrued income on statutory deposit, end-of-service obligations, deffered tax assets, right of use assets and long term portion of lease liabilities. All other financial statement line items would generally be classified as current. 2. Basis of preparation (continued)(a) Basis of presentation (continued)The Company’s management has made an assessment of its ability to continue as a going concern and is satisfied that it will be able to continue as a going concern in the foreseeable future. Furthermore, the management is not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and prepares the financial statements accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.The interim statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 18 of the interim condensed financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the interim statements of financial position, statements of income, comprehensive income and cash flows prepared for the insurance operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. In preparing the Company’s financial statements in compliance with International Financial Reporting Standards (IFRS) , the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealized gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders operations are uniform for similar transactions and events in similar circumstances.The inclusion of separate information of the insurance operations with the financial statements of the Company in the interim statement of financial position, the statements of income, comprehensive income and cash flows as well as certain relevant notes to the financial statements represents additional supplementary information as required by the implementing regulations (Note 18).The interim condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements as at and for the year ended December 31, 2019. These interim condensed financial statements are expressed in Saudi Arabian Riyals (SR). 2. Basis of preparation (continued)(b) Critical accounting judgments, estimates and assumptionsThe preparation of interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.In preparing this interim condensed financial information, the significant judgments made by the management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December 2019. However, the Company has reviewed the key sources of estimation uncertainties disclosed in the last annual financial statements against the backdrop of the COVID-19 pandemic. Management will continue to assess the situation, and reflect any required changes in future reporting periods.On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus (“Covid-19”) outbreak as a pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of the virus. Saudi Arabia in particular has implemented closure of borders, released social distancing guidelines and enforced country wide lockdowns and curfews.In response to the spread of the Covid-19 virus in the Country where the Company operates and its consequential disruption to the social and economic activities in those markets, the Company’s management has proactively assessed its impacts on its operations and has taken a series of proactive and preventative measures and processes to ensure: the health and safety of its employees and the wider community where it is operating the continuity of its business throughout the Kingdom is protected and kept intact.The major impact of Covid-19 pandemic is seen in medical and motor line of business as explained below. As with any estimate, the projections and likelihoods of occurrence are underpinned by significant judgment and rapidly evolving situation and uncertainties surrounding the duration and severity of the pandemic, and therefore, the actual outcomes may be different to those projected. The impact of such uncertain economic environment is judgmental, and the Company will continue to reassess its position and the related impact on a regular basis.Medical technical reservesBased on the management’s assessment, the management believes that the Government’s decision to assume the medical treatment costs for both Saudi citizens and expatriates has helped in reducing any unfavourable impact. During the lockdown, the Company saw a decline in medical reported claims (majorly elective and non-chronic treatment claims) which resulted in a drop in claims experience. However, subsequent to the lifting of lockdown since June 21, 2020, the Company is experiencing a surge in claims which is in line with the expectations of the Company’s management. The Company’s management has duly considered the impact of surge in claims in the current estimate of future contractual cashflows of the insurance contracts in force as at September 30, 2020 for its liability adequacy test. Based on the results, the Company has booked an amount of SR 2.2 million for the nine-month period ended September 30, 2020 (December 31, 2019: Nil ; June 30, 202 0.47) as a premium deficiency reserve.Motor technical reservesIn response to the Covid-19 pandemic, SAMA issued a circular 189 (the “circular”) dated 08 May 2020 to all insurance companies in the Kingdom of Saudi Arabia. Amongst other things, the circular instructed insurance companies to extend the period of validity of all existing retail motor insurance policies by further two months as well as providing a two-month additional coverage for all new retail motor policies written within one month of this circular.2. Basis of preparation (continued)Motor technical reserves (continued)The Management, in conjunction with its appointed actuary, deliberated on a variety of internal factors and concluded, that the Company considers the extension of two months in exiting motor policies as new policy and record a premium deficiency reserve based on the expected claims for the extended 2 months period.For new policies written as per above circular, the premium is earned over the period of coverage i.e 14 month as per the Company accounting policy. There is no significant impact of two month extension in earned premium as of September 30, 2020 as no material amounts of premium have been written during the one month period. The Company has performed a liability adequacy test using current estimates of future cash flows under its insurance contracts at segmented level for motor line of business and recorded a Premium deficiency reserve amounting to SR 5.5 million as at 30 September, 2020.Financial assetsTo cater for any potential impacts, the Covid-19 pandemic may have had on the financial assets of the Company, the Company has performed an assessment in accordance with its accounting policy, to determine whether there is an objective evidence that a financial asset or a group of financial assets has been impaired. For debt financial assets, these include factors such as, significant financial difficulties of issuers or debtors, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization, etc. In case of equities classified under available-for-sale, the Company has performed an assessment to determine whether there is a significant or prolonged decline in the fair value of financial assets below their cost. Based on these assessments, the Company’s management believes that the Covid-19 pandemic has had no material effects on Company’s reported results for the three-month and nine-month periods ended 30 September 2020. The Company’s management continues to monitor the situation closely. | 2 |
| Disclosure of new standards and amendments in standards [text block] | 3. Significant accounting policiesThe accounting policies, estimates and assumptions used in the preparation of these interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2019.Standards issued but not yet effectiveThe following standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s interim condensed financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. Further, the Company has chosen not to early adopt the amendments and revisions to the IFRS, which have been published and are mandatory for compliance for the Company with effect from future dates.IFRS 9, Financial Instruments (including amendments to IFRS 4, Insurance Contracts) In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9, all financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the income statement. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.3. Significant accounting policies (continued)IFRS 9, Financial Instruments (including amendments to IFRS 4, Insurance Contracts) (continued)In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2023.The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.The Company is eligible and have chosen to apply the deferral approach under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company’s financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9. IFRS 17 - Insurance ContractsIFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after 1 January 2023, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 'Revenue from Contracts with Customers' and IFRS 9 'Financial Instruments' have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the statement of income and the statement of financial position. The Company has decided not to early adopt this new standard. | 3 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of reinsurers/ retakaful share of unearned premium/ contributions, net [text block] | 10.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following: Three months period ended September 30, 2020(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the period 374,827,370 (161,572,101) 213,255,269Premium written during the period 113,803,412 *(38,176,798) 75,626,614Premium earned during the period (184,260,365) 68,049,159 (116,211,206)Balance as at the end of the period 304,370,417 (131,699,740) 172,670,677 *This amount includes SR 33,176,898 for reinsurance premium ceded abroad, SR 211,921 for reinsurance premium ceded locally and SR 4,787,979 for excess of loss expenses. Nine months period ended September 30, 2020(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the year 408,698,330 (152,377,585) 256,320,745Premium written during the period 531,838,456 *(215,125,605) 316,712,851Premium earned during the period (636,166,369) 235,803,450 (400,362,919)Balance as at the end of the period 304,370,417 (131,699,740) 172,670,67710. Technical reserves (continued)10.2 Movement in unearned premiums (continued)*This amount includes SR 199,481,049 for reinsurance premium ceded abroad, SR 1,280,621 for reinsurance premium ceded locally and SR 14,363,935 for excess of loss expenses Three months period ended September 30, 2019(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the period 568,058,243 (207,013,536) 361,044,707Premium written during the period 166,405,145 *(60,505,316) 105,899,829Premium earned during the period (257,869,345) 81,827,693 (176,041,652)Balance as at the end of the period 476,594,043 (185,691,159) 290,902,884*This amount includes SR 58,487,111 for reinsurance premium ceded abroad, SR 1,007,937 for reinsurance premium ceded locally and SR 1,010,268 for excess of loss expenses Nine month period ended September 30, 2019(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the year 390,422,335 (148,911,143) 241,511,192Premium written during the period 813,717,206 *(264,174,106) 549,543,100 Premium earned during the period (727,545,498) 227,394,090 (500,151,408)Balance as at the end of the period 476,594,043 (185,691,159) 290,902,884*This amount includes SR 255,763,020 for reinsurance premium ceded abroad, SR 4,370,017 for reinsurance premium ceded locally and SR 4,041,069 for excess of loss expenses. Year ended December 31, 2019(Audited) Gross Reinsurance NetBalance as at the beginning of the year 390,422,335 (148,911,143) 241,511,192 Premium written during the year 1,011,666,001 *(312,609,731) 699,056,270 Premium earned during the year (993,390,006) 309,143,289 (684,246,717)Balance as at the end of the year 408,698,330 (152,377,585) 256,320,745*This amount includes SR 302,757,400 for reinsurance premium ceded abroad, SR 5,811,262 for reinsurance premium ceded locally and SR 4,041,069 for excess of loss expenses. | 10.2 |
| Disclosure of investments in available-for-sale investments [text block] | 8. Available for sale investments8.1. Investments are classified as followsInsurance operations: Domestic International Total September 30, 2020(Unaudited)SR December 31, 2019(Audited)SR September 30, 2020(Unaudited)SR December 31, 2019(Audited)SR September 30, 2020(Unaudited)SR December 31, 2019(Audited)SRDebt instruments 132,388,048 128,180,982 5,247,255 5,143,123 137,635,303 133,324,105 Equities and mutual funds 7,894,195 7,991,984 - - 7,894,195 7,991,984 140,282,243 136,172,966 5,247,255 5,143,123 145,529,498 141,316,089 Shareholders’ operations: Domestic International Total September 30, 2020(Unaudited)SR December 31, 2019(Audited)SR September 30, 2020(Unaudited)SR December 31, 2019(Audited)SR September 30, 2020(Unaudited)SR December 31, 2019(Audited)SRDebt instruments 237,522,409 211,718,827 24,348,492 23,792,384 261,870,901 235,511,211 Equities and mutual funds 3,223,078 3,223,078 5,519,428 5,429,122 8,742,506 8,652,200 240,745,487 214,941,905 29,867,920 29,221,506 270,613,407 244,163,411 Total Domestic International Total September 30, 2020(Unaudited)SR December 31, 2019(Audited)SR September 30, 2020(Unaudited)SR December 31, 2019(Audited)SR September 30, 2020(Unaudited)SR December 31, 2019(Audited)SRDebt instrument 369,910,457 339,899,809 29,595,747 28,935,507 399,506,204 368,835,316 Equities and mutual funds 11,117,273 11,215,062 5,519,428 5,429,122 16,636,701 16,644,184 381,027,730 351,114,871 35,115,175 34,364,629 416,142,905 385,479,500 8. Available for sale investments (continued)8.1. Investments are classified as follows (continued)8.2. Movement in available for sale investment balance is as followsInsurance operations: Quoted securities Unquoted securities Total SRAs at 1 January 2019 100,623,986 14,582,533 115,206,519Purchases 22,491,134 - 22,491,134Disposals/maturity - (5,000,000) (5,000,000)Amortisation (251,970) (12,645) (264,615)Unrealised gain on fair value 8,021,169 861,882 8,883,051 Transfer from unquoted to quoted 10,431,770 (10,431,770) -As at 31 December 2019 141,316,089 - 141,316,089 As of 1 January 2020 141,316,089 - 141,316,089 Amortisation (192,186) - (192,186)Unrealised gain on fair value 4,405,596 - 4,405,596As at 30 September 2020 145,529,498 - 145,529,498 The cumulative unrealised gain in fair value of available for sale investments including deferred tax impact as mentioned in Notes 9 and 15 as at 30 September 2020 amounts to SR 8,348,689 (31 December 2019: gain of SR 3,943,093).Shareholders’ operations: Quoted securities Unquoted securities Total SRAs at 1 January 2019 130,639,760 85,532,745 216,172,505Purchases 30,652,614 - 30,652,614Disposals/maturity (1,687,500) (17,000,000) (18,687,500)Amortisation (329,390) (14,356) (343,746)Unrealised gain on fair value 10,475,364 5,894,174 16,369,538 Transfer from unquoted to quoted 35,979,800 (35,979,800) -As at 31 December 2019 205,730,648 38,432,763 244,163,411 As of 1 January 2020 205,730,648 38,432,763 244,163,411 Purchases - 20,000,000 20,000,000Amortisation (301,897) - (301,897)Unrealised gain on fair value 6,300,255 451,638 6,751,893As at 30 September 2020 211,729,006 58,884,401 270,613,407 The cumulative unrealised gain in fair value of available for sale investments including deferred tax impact as mentioned in Notes 9 and 15 as at 30 September 2020 amounts to SR 18,602,516 (31 December 2019: gain of SR 8,255,508 ). | 8 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Reinsurers’ balance receivable, netSR September 30, 2020(Unaudited) December 31, 2019(Audited) Receivables from reinsurers 89,154,751 75,563,011 Provision for doubtful reinsurers’ receivables (4,899,908) (5,027,110)Reinsurers’ balance receivable, net 84,254,843 70,535,901 | 6 |
| Disclosure of prepayments and other assets [text block] | Right-of-use assets and Lease Liabilities7.1. Right of use assetsThe following table presents the right-of-use assets for the Company:SR September 30, 2020(Unaudited) December 31, 2019(Audited) Balance at the beginning of the period/year 6,776,228 9,849,530Amortization (2,344,032) (3,073,302)Balance at the end of the period/year 4,432,196 6,776,2287.2. Lease LiabilitiesThe following table represents the movement of lease liabilities for the Company:SR September 30, 2020(Unaudited) December 31, 2019(Audited) Opening balance 5,784,231 8,345,419Finance costs 357,705 231,120Lease rental payments (2,361,787) (2,801,707) Balance at the end of the period/year 3,780,149 5,774,832 | 7 |
| Disclosure of other receivables, net [text block] | . Premiums receivable, netPremiums receivable comprise amounts due from the following:SR September 30, 2020(Unaudited) December 31, 2019(Audited) Policyholders 147,331,907 169,764,645Brokers and agents 301,669,224 288,920,109 Related parties (Note 14) 51,302,988 16,988,438 500,304,119 475,673,192Provision for doubtful receivable (56,947,562) (55,086,915) Premiums receivable, net 443,356,557 420,586,277 | 5 |
| Disclosure of cash and cash equivalents [text block] | . Cash and cash equivalentsCash and cash equivalents included in the interim statement of cash flows comprise the following: Insurance operationsSR September 30, 2020(Unaudited) December 31, 2019(Audited)Bank balances and cash 11,642,681 67,046,426Deposits maturing within 3 months from the acquisition date 190,068,553 20,000,000 201,711,234 87,046,426 Shareholders’ operations September 30, 2020(Unaudited) December 31, 2019(Audited)Bank balances and cash 115,782,045 61,819,191Total cash and cash equivalents 317,493,279 148,865,617 | 4 |
| Disclosure of gross outstanding claims/ benefits [text block] | 10.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:SR September 30, 2020(Unaudited) December 31, 2019(Audited)Gross outstanding claims 512,144,641 569,506,181 Less: Realizable value of salvage and subrogation (32,107,286) (36,439,428) 480,037,355 533,066,753Claims incurred but not reported 113,802,257 87,780,442Premium deficiency reserves 15,181,866 11,731,333 Additional premium reserves 3,638,875 1,369,320 Unit linked liabilities 520,498,876 535,415,117 1,133,159,229 1,169,362,965Less: - Reinsurers’ share of outstanding claims (406,466,136) (432,328,207)- Reinsurers’ share of claims incurred but not reported (48,544,853) (43,298,714) (455,010,989) (475,626,921)Net outstanding claims and reserves 678,148,240 693,736,044 | 10.1 |
| Disclosure of zakat [text block] | 15. Zakat and income taxA summary of the Company’s share capital and percentages of ownership are as follows: September 30, 2020 December 31, 2019 SR % SR %Saudi and GCC Shareholders 281,460,000 46.91% 93,820,000 46.91%Non-Saudi Shareholders 318,540,000 53.09% 106,180,000 53.09% 600,000,000 100% 200,000,000 100% As at 30 September 2020, the authorized, issued and fully paid-in share capital of the Company consists of 60 million shares of SR 10 each and as at 31 December 2019, the authorized, issued and fully paid-in share capital of the Company consists of 20 million shares of SR 10 each. The Company’s zakat and income tax calculations and corresponding accruals and payments of zakat and income tax are based on the above ownership percentages in accordance with the relevant provisions of the Saudi Arabian zakat and income tax regulations.Impact of adopting IAS - 12As at 1 January 2019: SRFinancial statement impacted Account As previously stated as at January 01, 2019 Effect of restatement As restated as at January 01, 2019 Statement of changes in equity Impact of adopting IAS 12 - 9,350,189 9,350,189The zakat and income tax provision as at the period / year end is as follows:SR September 30, 2020(Unaudited) December 31, 2019(Audited) Provision for zakat 9,135,519 24,451,612Provision for income tax 3,980,577 3,980,577 13,116,096 28,432,189The zakat and income tax charge for the nine months period is as follows:SR September 30, 2020 (Unaudited) September 30, 2019 (Unaudited) Zakat for the nine months period 4,381,259 3,261,030Income tax for the nine months period - Current tax - 3,492,377- Deferred tax (664,553) (342,732) 3,716,706 6,410,67515. Zakat and income tax (continued)The zakat and income tax charge for the three months period is as follows:SR September 30, 2020 (Unaudited) September 30, 2019 (Unaudited) Zakat for the three months period 2,222,552 1,161,512Income tax for the three months period - Current tax - 1,180,248- Deferred tax (174,476) (157,240) 2,048,076 2,184,520Status of assessmentsThe Company has filed zakat and income tax declarations for the years ended 31 December 2008 to 31 December 2019. For the years from 2008 to 2013, the company has settled the amount of SR 9.6 million in relation to the assessment raised by GAZT that was paid by the provision created against the assessment for those years. The final zakat and tax assessments for the year 2014 has been issued by GAZT and the assessments for the years 2015 to 2019 are still outstanding. The Company has filed appeals against the General Authority for Zakat and Tax (“GAZT”) assessments of additional zakat and income tax arising from disallowance of long-term investments from zakat base for the year 2014, disallowance of the carried forward losses, not deducting the amount of income tax paid from the assessment, and the calculation of delay fine. In result of the final assessments for the year 2014 GAZT has requested additional zakat and income tax amounting to SR 6.2 million. The Company has accounted for the additional zakat and income tax provision in the financial statements, however has not paid the same. The finalisation of the assessment is not expected to have material impact on the financial statements.Prepaid expenses and other assets include payment made by the Company in relation to VAT assessment raised by General Authority of Zakat and Tax ("GAZT'') for 2018 and 2019 financial years amounting to Saudi Riyals SR 45.9 million. The payments were made to GAZT to avoid penalties. However, subsequent to period end, the Company has submitted objections to the GAZT assessment. The Company's management believes that there is strong basis that the assessment raised by the GAZT will be reversed and the full amount will be reclaimed in due course | 15 |
| Disclosure of deferred tax [text block] | Deferred tax assets, netSR September 30, 2020(Unaudited) December 31, 2019(Audited) Deferred tax assets, net 11,221,175 6,961,507Movement in deferred tax asset balance is as follows: September 30, 2020(Unaudited) 31 December 2019(Audited)At the beginning of the period/year (note 15) 6,961,507 9,350,189Deferred tax income - statement of income 664,553 292,487Deferred tax (expense) / income - statement of comprehensive income 3,595,115 (2,681,169)At the end of the period/year 11,221,175 6,961,507This deferred tax arises on end of service obligations, provision against premium receivable, provision against reinsurance receivable, unabsorbed tax losses, fair value reserve on investments and property and equipment.10. Technical reserves | 9 |
| Disclosure of classes of share capital [text block] | 16.1 Share capitalThe authorised and issued share capital of the Company is SR 600 million divided into 60 million shares of SR 10 each (December 31, 2019: SR 200 million divided into 20 million shares of SR 10 each). The founding shareholders of the Company have subscribed and paid for 13 million shares with a nominal value of SR 10 each, which represents 65% of the shares of the Company's capital and the remaining 7 million shares with a nominal value of SR 10 each have been subscribed by general public.Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat and income tax. September 30, 2020 Number of Shares Authorized, issued and paid up capital SRAllianz Europe BV 11.10 Million 111 MillionAllianz France International 9.75 Million 97.5 MillionAllianz Mena Holding Bermuda 9.75 Million 97.5 MillionBanque Saudi Fransi 8.40 Million 84 MillionPublic 21.00 Million 210 Million 60 Million 600 Million16. Share capital and loss per share (continued)16.1 Share capital (continued) December 31, 2019 Number of Shares Authorized, issued and paid up capital SRAllianz Europe BV 3.70 Million 37 MillionAllianz France International 3.25 Million 32.5 MillionAllianz Mena Holding Bermuda 3.25 Million 32.5 MillionBanque Saudi Fransi 2.80 Million 28 MillionPublic 7.00 Million 70 Million 20 Million 200 MillionDuring the period the Company has increased its share capital through right issue by SR 400 million consist of two shares for every one share held. Such right issue has been approved by the regulatory authorities and the extraordinary general assembly of the Company and the current paid up capital of the Company is SR 600 million. The Company has incurred transaction cost of SR 6.4 million in respect of increase in share capital, which has been charged directly to the Statement of Changes in Equity. | 16.1 |
| Disclosure of earnings per share [text block] | 16.2 Earning / (Loss) per share(Loss) / earnings per share has been calculated by dividing the (net loss ) / earnings for the period by the weighted average number of shares outstanding at the reported date. The weighted average number of shares have been retrospectively adjusted for all the prior periods to reflect the bonus element of the right issue as required by IAS 33 “Earning per share”. The weighted average number of ordinary share for prior period is computed using an adjustment factor of 1.75 which a ratio of theoretical ex-right price of 15.98 and the closing price per share of SR 27.95 before the right issue. For the three month period ended September 30, 2020 September 30, 2019 (Restated)(Loss) / income for the period (12,350,655) 6,131,561Weighted average number of shares 59,455,955 34,973,931(Loss) / earnings for the period (0.21) 0.18 For the nine month period ended September 30, 2020 September 30, 2019 (Restated)(Loss) / income for the period (18,597,501) 19,906,589Weighted average number of shares 43,194,173 34,973,931(Loss) / earnings for the period (0.43) 0.57 | 16.2 |
| Disclosure of related party transactions [text block] | Transactions and balances with related parties and other shareholdersRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances: Transactions for the nine months period ended Balance as at September 30,2020 September 30,2019 September 30, 2020 December 31, 2019 SR SR SR SR Entities controlled, jointly controlled or significantly influenced by related parties Major shareholders - Insurance premium ceded 13,522,838 132,400,211 - Reinsurers’ share of claims paid 10,403,516 40,105,447 - Commission income 267,849 5,743,315 - Third party administrator expenses 2,373,858 7,412,374 - Accrued third party administrator 6,231,252 6,436,659- Reinsurance balance payable, net 114,651,122 84,824,961- Investments in equity of Saudi NextCare 800,000 800,000 - Other Shareholders (other than related party) - Insurance premium written 8,791,908 135,791,272 - Claims paid 12,145,200 26,675,346 - Commission expense 486,496 1,474,055 - Premium receivable 51,302,988 16,988,438- Outstanding claims 30,574,046 33,834,830- Cash and cash equivalents 311,566,372 104,403,157 Unit linked investments managed by shareholders (including receivable for unit linked investments) 540,102,878 545,163,723Related parties include Allianz SNA, Allianz Mena Holding Bermuda, Allianz Risk Transfer A.G. Dubai, Allianz France, Allianz Global Corporate and Specialty AG, Allianz World Wide Care, Allianz Global risks U.S Insurance, Allianz Belgium, Euler Hermes, Allianz SE Zurich, Allianz Insurance Hong Kong, Allianz Global Risks Netherland, Allianz Insurance Singapore, Allianz Insurance New Zealand and Saudi NextCare, Other shareholders include Banque Saudi Fransi and its Group Companies which are not the related parties.Key management personnel are persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly and comprise top management executives including the Chief Executive Officer, and the Chief Financial Officer of the Company. The compensation of key management personnel during the period is as follows:September 30, 2020 BOD members Top executives SR SRSalaries and compensation - 7,169,397Allowances 261,000 13,500Annual remuneration 765,000 90,000End of service obligations - 320,156 1,026,000 7,593,05314. Transactions and balances with related parties and other shareholders (continued)September 30, 2019 BOD members Top executives SR SRSalaries and compensation - 5,857,903Allowances 130,500 -Annual remuneration 675,000 -End of service obligations - 322,848 805,500 6,180,751 | 14 |
| Disclosure of entity's operating segments [text block] | 13. Operating Segments Operating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess their performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board is measured in a manner consistent with that in the interim statement of income. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2019.Segment assets do not include cash and cash equivalents, prepaid expenses , right of use assets and other assets, available for sale investments, reinsurance balances, property and equipment, statutory deposit and accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include accrued and other liabilities, surplus distribution payable, reinsurers’ balances payable, premium deficiency reserve, additional premium reserve, end-of-service obligations, zakat and income tax and accrued income payable to SAMA. Accordingly, they are included in unallocated liabilities.The unallocated assets and unallocated liabilities are reported to chief operating decision maker on the cumulative basis and not reported under the related segments.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities as at September 30, 2020 and December 31, 2019, its total revenues, expenses, and net income for the three months and nine months periods then ended, are as follows:Motor : Motor Medical : MedicalProperty and casualty : Fire, burglary, money, construction, liability and marineProtection and saving : Group retirement and individual protection and saving 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRAs at 30 September 2020 (Unaudited) Assets Premiums receivable, gross 190,534,756 130,120,104 145,242,304 34,406,955 500,304,119 - 500,304,119Provision for doubtful debts (56,947,562) - (56,947,562)Reinsurers’ share of outstanding claims 5,083,202 16,113,647 373,481,641 11,787,646 406,466,136 - 406,466,136Reinsurers’ share of claims incurred but not reported (6,197) 21,395,604 20,566,802 6,588,644 48,544,853 - 48,544,853Reinsurers’ share of unearned premiums 27,314 46,282,941 64,960,379 20,429,106 131,699,740 - 131,699,740Deferred policy acquisition costs 7,295,953 4,220,359 6,754,719 (2,541,475) 15,729,556 - 15,729,556Financial assets at fair value through statement of income (unit linked investments) 540,102,878 540,102,878 540,102,878 Unallocated assets - - - - 289,154,845 727,229,983 1,016,384,828Total assets 2,602,284,548 Liabilities and Equity Outstanding claims 45,537,937 26,229,579 391,054,605 17,215,234 480,037,355 - 480,037,355Claims incurred but not reported 44,296,628 34,794,291 24,968,459 9,742,879 113,802,257 - 113,802,257Unearned premium 88,196,039 85,736,218 101,074,761 29,363,399 304,370,417 - 304,370,417Unearned reinsurance commission 1,776 - 3,783,051 18,339 3,803,166 - 3,803,166 Unit linked liabilities - - - 520,498,876 520,498,876 - 520,498,876 Unallocated liabilities 440,365,317 15,146,360 455,511,677 Equity - - - - 12,177,177 712,083,623 724,260,800 Total liabilities and equity 2,602,284,548 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the nine months period ended 30 September 2020 (Unaudited) Gross written premiums – retail 17,100,441 - 266,182 99,645,884 117,012,507 - 117,012,507 Gross written premiums – corporate 69,659,608 138,618,468 111,792,036 4,067,884 324,137,996 - 324,137,996 Gross written premiums – very small entities 2,616,894 157,700 634,868 97,463 3,506,925 - 3,506,925 Gross written premiums – small entities 15,641,297 874,520 17,943,758 266,870 34,726,445 - 34,726,445 Gross written premiums – medium entities 24,551,077 1,419,116 25,298,746 1,185,644 52,454,583 - 52,454,583 Reinsurance premiums ceded (30,720) (76,742,245) (93,607,626) (30,381,079) (200,761,670) - (200,761,670)Excess of loss expenses (3,131,414) - (11,232,521) - (14,363,935) - (14,363,935)Fee income from unit linked investments 910,785 910,785 - 910,785 Net written premiums 126,407,183 64,327,559 51,095,443 75,793,451 317,623,636 - 317,623,636 Changes in unearned premiums, net 106,292,068 (611,758) (17,514,340)(4,515,902) 83,650,068 - 83,650,068Net premiums earned 232,699,252 63,715,801 33,581,101 71,277,550 401,273,704 - 401,273,704 Reinsurance commissions 16,398 - 7,035,232 602,328 7,653,958 - 7,653,958 Net claims and other benefits paid (187,667,554) (40,169,922) (3,408,196) (79,973,290) (311,218,962) - (311,218,962)Changes in outstanding claims, net 35,292,779 433,785 (6,294,930) (2,264,307) 27,167,327 - 27,167,327 Changes in premium deficiency reserve 13,202 (2,153,519) (386,938) (923,278) (3,450,533) - (3,450,533)Changes in additional premium reserve - - (2,269,555) - (2,269,555) - (2,269,555)Changes in claims incurred but not reported, net (12,286,054) (5,480,905) (1,879,207) (1,129,510) (20,775,676) - (20,775,676)Change in unit linked liabilities - - - 14,916,241 14,916,241 - 14,916,241 Unrealised loss on unit linked investments - - - 8,505,425 8,505,425 - 8,505,425 Policy acquisition costs (19,811,903) (7,838,880) (11,410,387) (3,900,077) (42,961,247) - (42,961,247)Inspection and supervision fees (4,069,890) - (4,069,890)Net underwriting income 74,770,792 - 74,770,792 Unallocated Provision for doubtful debts (2,304,908) - (2,304,908)General and administrative expenses (99,662,869) (794,177) (100,457,046)Investment income 2,925,287 5,688,404 8,613,691 Other income 4,496,676 - 4,496,676 Net loss for the period before attribution and zakat and income tax (14,880,795) 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the three months period ended 30 September 2020 (Unaudited) Gross written premiums – retail 4,032,248 - 3,745 19,522,140 23,558,133 - 23,558,133 Gross written premiums – corporate 13,342,975 33,595,802 23,547,549 621,157 71,107,483 - 71,107,483 Gross written premiums – very small entities 839,087 (33,528) 152,412 - 957,971 - 957,971 Gross written premiums – small entities 3,958,681 (67,614) 3,585,513 (692) 7,475,888 - 7,475,888 Gross written premiums – medium entities 4,757,757 276,275 5,562,692 107,213 10,703,937 - 10,703,937 Reinsurance premiums ceded - (17,923,939) (15,109,147) (355,733) (33,388,819) - (33,388,819)Excess of loss expenses (1,003,061) - (3,784,918) - (4,787,979) - (4,787,979)Fee income from unit linked investments 316,270 316,270 - 316,270 Net written premiums 25,927,687 15,846,996 13,957,846 20,210,355 75,942,884 - 75,942,884 Changes in unearned premiums, net 35,317,968 2,938,045 (457,136) 2,785,715 40,584,592 - 40,584,592 Net premiums earned 61,245,656 18,785,041 13,500,709 22,996,070 116,527,476 - 116,527,476 Reinsurance commissions 5,104 (546,670) (16,607) 13,084 (545,089) - (545,089)Net claims and other benefits paid (47,600,734) (16,444,462) (1,074,003) (29,823,999) (94,943,198) - (94,943,198)Changes in outstanding claims, net 6,554,768 258,875 (1,727,027) (1,836,137) 3,250,479 - 3,250,479 Changes in premium deficiency reserve 5,635,529 (2,631,092) (72,677) (857,919) 2,073,841 - 2,073,841 Changes in additional premium reserve - - (723,767) - (723,767) - (723,767)Changes in claims incurred but not reported, net 1,849,706 (3,231,414) 136,294 91,218 (1,154,196) - (1,154,196)Change in unit linked liabilities - - - (3,935,113) (3,935,113) - (3,935,113)Unrealised gain on unit linked investments - - - 10,677,945 10,677,945 - 10,677,945 Policy acquisition costs (5,141,419) (2,216,635) (3,948,825) (237,124) (11,544,003) - (11,544,003)Inspection and supervision fees (906,726) - (906,726)Net underwriting income 18,777,649 - 18,777,649 Unallocated Provision for doubtful debts (882,524) - (882,524)General and administrative expenses (31,269,879) (256,119) (31,525,998)Investment income 883,231 1,999,811 2,883,042 Other income 445,252 - 445,252 Net income for the period before attribution and zakat and income tax (10,302,579) 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRAs at 31 December 2019 (Audited) Assets Premiums receivable, gross 283,683,135 104,490,425 62,145,925 25,353,707 475,673,192 - 475,673,192 Provision for doubtful debts (55,086,915) - (55,086,915)Reinsurers’ share of outstanding claims 5,745,932 16,649,433 404,394,245 5,538,597 432,328,207 - 432,328,207 Reinsurers’ share of claims incurred but not reported (69,598) 7,921,410 31,056,299 4,390,603 43,298,714 - 43,298,714 Reinsurers’ share of unearned premiums 225,976 43,484,703 98,990,010 9,676,896 152,377,585 - 152,377,585 Deferred policy acquisition costs 16,732,264 4,574,957 6,167,728 (555,399) 26,919,550 - 26,919,550 Financial assets at fair value through statement of income (unit linked investments) 538,113,858 538,113,858 - 538,113,858 Unallocated assets - - - 363,516,850 357,096,182 720,613,032Total assets 2,334,237,223 Liabilities and Equity Outstanding claims 81,493,446 27,199,150 415,672,279 8,701,878 533,066,753 - 533,066,753 Claims incurred but not reported 31,947,173 15,839,192 33,578,749 6,415,328 87,780,442 - 87,780,442 Unearned premium 194,686,769 82,326,222 117,590,052 14,095,287 408,698,330 - 408,698,330 Unearned reinsurance commission 16,177 - 6,833,437 498,159 7,347,773 - 7,347,773 Unit linked liabilities 535,415,117 535,415,117 - 535,415,117 Unallocated liabilities - - - - 397,061,045 30,361,375 427,422,420Equity - - - - 7,771,581 326,734,807 334,506,388Total liabilities and equity 2,334,237,22313. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the nine months period ended 30 September 2019 (Unaudited) Gross written premiums – retail 50,360,260 - 1,871,747 91,937,005 144,169,012 - 144,169,012Gross written premiums – corporate 312,606,029 162,439,911 188,683,074 4,273,562 668,002,576 - 668,002,576Gross written premiums – very small entities - 15,919 - - 15,919 - 15,919 Gross written premiums – small entities - 768,776 - - 768,776 - 768,776 Gross written premiums – medium entities - 760,923 - - 760,923 - 760,923 Reinsurance premiums ceded - (87,832,330) (152,217,393) (20,083,314) (260,133,037) - (260,133,037)Excess of loss expenses (3,322,562) - (718,507) - (4,041,069) - (4,041,069)Fee income from unit linked investments 872,180 872,180 - 872,180 Net written premiums 359,643,727 76,153,199 37,618,921 76,999,433 550,415,280 - 550,415,280 Changes in unearned premiums, net (26,830,261) (22,868,734) 2,971,484 (2,664,181) (49,391,692) - (49,391,692)Net premiums earned 332,813,466 53,284,465 40,590,405 74,335,252 501,023,588 - 501,023,588 Reinsurance commissions 15,960 - 11,863,003 39,411 11,918,374 - 11,918,374 Net claims and other benefits paid (248,001,058) (37,797,867) (6,587,133) (99,749,794) (392,135,852) - (392,135,852)Changes in outstanding claims, net (20,889,757) 2,165,556 2,574,634 (1,740,957) (17,890,524) - (17,890,524)Changes in premium deficiency reserve - (2,570,107) - - (2,570,107) - (2,570,107)Changes in additional premium reserve - - (395,866) - (395,866) - (395,866)Changes in claims incurred but not reported, net 29,037,889 (7,239,105) 127,524 692,385 22,618,693 - 22,618,693 Change in unit linked liabilities - - - 24,473,841 24,473,841 - 24,473,841 Unrealised gain on unit linked investments - - - 12,876,524 12,876,524 - 12,876,524 Policy acquisition costs (27,046,832) (5,102,714) (8,932,398) (2,121,918) (43,203,862) - (43,203,862)Inspection and supervision fees - - - - (5,781,907) - (5,781,907)Net underwriting income 110,932,902 - 110,932,902 Unallocated Provision for doubtful debts (2,009,580) - (2,009,580)General and administrative expenses (89,344,242) (667,319) (90,011,561)Investment income 2,655,025 4,803,997 7,459,022 Other income 2,410,991 - 2,410,991 Net income for the period before attribution and zakat and income tax 28,781,774 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the three months period ended 30 September 2019 (Unaudited) Gross written premiums – retail 17,686,647 - 615,260 21,852,068 40,153,975 - 40,153,975 Gross written premiums – corporate 33,835,807 54,269,018 37,187,154 347,011 125,638,990 - 125,638,990 Gross written premiums – very small entities - 12,266 - - 12,266 - 12,266Gross written premiums – small entities - 74,922 - - 74,922 - 74,922Gross written premiums – medium entities - 524,992 - - 524,992 - 524,992Reinsurance premiums ceded - (27,925,096) (31,088,193) (481,759) (59,495,048) - (59,495,048)Excess of loss expenses (828,994) - (181,274) - (1,010,268) - (1,010,268)Fee income from unit linked investments 295,835 295,835 - 295,835 Net written premiums 50,693,460 26,956,102 6,532,947 22,013,155 106,195,664 - 106,195,664 Changes in unearned premiums, net 67,244,756 (5,518,144) 6,255,430 2,159,781 70,141,823 - 70,141,823 Net premiums earned 117,938,216 21,437,958 12,788,377 24,172,936 176,337,487 - 176,337,487 Reinsurance commissions 5,379 - 4,008,712 274,728 4,288,819 - 4,288,819 Net claims and other benefits paid (90,623,516) (18,352,166) (2,098,248) (29,247,700) (140,321,630) - (140,321,630)Changes in outstanding claims, net (5,968,524) 10,350,007 1,350,065 (816,409) 4,915,139 - 4,915,139 Changes in premium deficiency reserve - 439,765 - 591,718 1,031,483 - 1,031,483Changes in additional premium reserve - - (191,600) - (191,600) - (191,600)Changes in claims incurred but not reported, net 5,171,650 (8,261,781) 12,592 257,292 (2,820,247) - (2,820,247)Change in unit linked liabilities - - - 9,368,672 9,368,672 - 9,368,672 Unrealised gain on unit linked investments - - - (1,210,233) (1,210,233) - (1,210,233)Policy acquisition costs (8,731,951) (963,758) (1,075,806) (272,003) (11,043,518) - (11,043,518)Inspection and supervision fees (1,381,191) - (1,381,191)Net underwriting income 38,973,181 - 38,973,181 Unallocated Provision for doubtful debts (2,190,228) - (2,190,228)General and administrative expenses (30,108,529) (272,479) (30,381,008)Investment income 888,759 1,584,876 2,473,635 Other income 218,688 - 218,688 Net income for the period before attribution and zakat and income tax 9,094,268 | 13 |
| Disclosure of capital management [text block] | 17. Risk ManagementCapital Management\Objectives are set by the Company to maintain stable capital ratios in order to support its business objectives and maximise shareholders’ value. The Company manages its capital requirements by assessing shortfalls between reported and required capital levels on a regular basis. Adjustments to current capital levels are made in light of changes in market conditions and risk characteristics of the Company’s activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue shares. The operations of the Company are subject to local regulatory requirements within the jurisdiction where it is incorporated. Such regulations not only prescribe approval and monitoring of activities but also impose certain 17. Risk Management (continued)restrictive provisions e.g. capital adequacy to minimize the risk of default and insolvency on the part of the insurance companies and to enable them to meet unforeseen liabilities as these arise. The Company maintains its capital as per guidelines laid out by SAMA in Article 66 table 3 and 4 of the Implementing Insurance Regulations detailing the solvency margin required to be maintained. According to the said Article, the Company shall maintain solvency margin equivalent to the highest of the following three methods as per SAMA Implementing Regulations: - Minimum Capital Requirement of SR 200 million - Premium Solvency Margin - Claims Solvency Margin The Company’s management, through various scenario analysis as required by the regulator, has assessed the potential of the Covid-19 pandemic by performing stress testing for various variables like: gross premium growth, increase in employee cost, YTD loss ratio, outstanding premium provisions etc. and the related impact on the revenue, profitability, loss ratio and solvency ratio. The Company’s management has concluded that based on the stress testing performed the solvency margin of the Company has not been reduced below the minimum required margins. As with any forecasts, the projections and likelihoods of occurrence are underpinned by significant judgements and uncertainties and, therefore, the actual outcomes may be different to those projected. As the situation is fluid and rapidly evolving, the Company will continue to reassess its position and the related impact on a regular basis.The Company has fully complied with the externally imposed capital requirements during the reported financial year.Credit risk managementThe Company has strengthened its credit risk management policies to address the fast changing and evolving risks posed by the current circumstances. These include review of credit concentrations at granular economic sector, region, counterparty level and take appropriate action where required. Based on the review, the Company has identified the following sectors being impacted significantly by the Covid-19 pandemic and lower oil prices: Foods Airlines Freight companies Hotels Retail Construction Entertainment TourismLiquidity risk managementThe Company is aware of the need to keep a close focus on liquidity management during this period and has enhanced its monitoring of current liquidity needs as well as the pandemic in its entirety. The Company regularly reviews and updates the liquidity forecast based on the individual liquidity balance as well as the continued development of external economic factors. | 17 |
| Disclosure of commitments and contingencies, general [text block] | 11. Contingencies and commitments a) The Company’s commitments and contingencies are as follows:SR September 30, 2020(Unaudited) December 31, 2019(Audited)Letters of guarantee 15,940,000 15,940,000b) The Company operates in the insurance industry and is subject to legal proceedings in the normal course of business. While it is not practicable to forecast or determine the final results of all pending or threatened legal proceedings, management does not believe that such proceedings (including litigations) will have a material effect on its interim financial position and results as at and for the period ended September 30, 2020 . There was no change in the status of legal proceedings as disclosed at 31 December 2019. | 11 |
| Disclosure of fair value of financial assets and liabilities [text block] | 12. Fair values of financial instrumentsFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either:- in the accessible principal market for the asset or liability, or- in the absence of a principal market, in the most advantages accessible market for the asset or liabilityThe fair values of on-balance sheet financial instruments are not significantly different from their carrying amounts included in the interim condensed financial statements.Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:Level 1: quoted prices in active markets for the same or identical instrument that an entity can access at the measurement date;Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; andLevel 3: valuation techniques for which any significant input is not based on observable market data.a. Carrying amounts and fair valueThe following table shows the carrying amount and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation to fair value12.1 Insurance operations: Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 30 September 2020 Unit linked investments 540,102,878 540,102,878 - - 540,102,878Available for sale investments measured at fair value Bonds and sukuks 137,635,302 137,635,303 - - 137,635,303Mutual funds 4,709,758 4,709,758 - - 4,709,758Equities 3,184,438 3,184,437 - - 3,184,437Unit linked liabilities (520,498,876) (520,498,876) - - (520,498,876) 165,133,500 165,133,500 - - 165,133,50012. Fair values of financial instruments (continued)12.2 Insurance operations (continued) : Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 December 2019 Unit linked investments 538,113,858 538,113,858 - - 538,113,858 Available for sale investments measured at fair value Bonds and Sukuks 133,324,105 133,324,105 - - 133,324,105 Mutual Funds 4,865,203 4,865,203 - - 4,865,203 Equities 3,126,781 3,126,781 - - 3,126,781 Unit linked liabilities (535,415,117) (535,415,117) - - (535,415,117) 144,014,830 144,014,830 - - 144,014,83012.2 Shareholders’ operations: Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 30 September 2020 Available for sale investments measured at fair value Bonds and sukuks 261,870,901 206,209,576 - 55,661,325 261,870,901Mutual funds 5,519,428 5,519,428 - 5,519,428Equities 3,223,078 - 3,223,078 3,223,078 270,613,407 211,729,004 - 58,884,403 270,613,407 Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 December 2019 Available for sale investments measured at fair value Bonds and Sukuk 235,511,211 200,301,526 - 35,209,685 235,511,211 Mutual Funds 5,429,122 5,429,122 - - 5,429,122 Equities 3,223,078 - - 3,223,078 3,223,078 244,163,411 205,730,648 - 38,432,763 244,163,411 During the period ended 30 September 2020 there were no transfers between level 1 and level 3 fair value measurements. There were transfers between Level 1 and Level 3 fair value measurements during the year ended 31 December 2019 (please refer note 8). 12. Fair values of financial instruments (continued)b. Measurement of fair values i. Valuation technique and significant unobservable inputsThe Discounted Cash Flow Model (DCF) has been used to determine the fair value of debt securities and sukuks of shareholders’ operations under level 3. This model considers the present value of net cash flows to be generated from the debt securities and sukuks discounted at the market yield of treasury bills having similar terms and adjusted for the effect of non-marketability of the debt securities and sukuks which includes Saudi sovereign curve yield and risk premium prevailing in the Saudi market. Equities amount to SR 3,223,078 represent investment in unquoted securities which are carried at cost. The fair value are not evidenced by a quoted price in an active market for an identical asset or based on a valuation technique that uses only data from observable markets.The following table shows a reconciliation from the beginning balances to the ending balances for the fair value measurement in level 3 of the fair value hierarchy: Insurance operationsSR September 30, 2020(Unaudited) December 31, 2019(Audited) Balance at the beginning of the period/year - 14,582,533Disposals/maturity - (5,000,000)Amortisation - (12,645) Unrealised gain on fair value of available for sale investments - 861,882Transfer from level 3 to level 1 - (10,431,770)Balance at the end of the period/year - -12. Fair values of financial instruments (continued)b. Measurement of fair values (continued) Shareholder operationsSR September 30, 2020(Unaudited) December 31, 2019(Audited) Balance at the beginning of the period/year 38,432,763 85,532,745Purchases 20,000,000 -Disposals/maturity - (17,000,000)Amortisation - (14,356)Unrealised (loss)/gain on fair value of available for sale investments 451,638 5,894,174 Transfer from level 3 to level 1 - (35,979,800)Balance at the end of the period/year 58,884,401 38,432,763 Sensitivity AnalysisThe sensitivity to a 1% increase in the risk adjusted discount rate with all other variables constant on the fair value of the level 3 available for sale investments is SR 31,696 and sensitivity to 1% decrease in the risk adjusted discount rate with all other variables constant on the fair value of the level 3 available for sale investments is SR 31,696 . | 12 |
| Disclosure of comparative figures [text block] | 19. Comparative figuresCertain prior period figures have been reclassified to conform to current period presentation | 19 |
| Disclosure of board of director's approval of the financial statements [text block] | 20. Approval of the interim condensed financial statementsThe interim condensed financial statements have been approved by the Company’s Board of Directors on 3 November 2020 (corresponding to 17 Rabi’ Al Awwal 1442H). | 20 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 18. Supplementary informationa) Interim statements of financial position SR 30 September 2020 31 December 2019 Insurance operations Share-holders’ operations Total Insurance operations Share-holders’ operations TotalASSETS Cash and cash equivalents 201,711,234 115,782,045 317,493,279 87,046,426 61,819,191 148,865,617Prepaid expenses and other assets 103,828,580 9,121,254 112,949,834 69,793,539 2,696,665 72,490,204Premiums receivable, net 443,356,557 - 443,356,557 420,586,277 - 420,586,277Reinsurers’ balance receivable, net 84,254,843 - 84,254,843 70,535,901 - 70,535,901Reinsurers’ share of outstanding claims 406,466,136 - 406,466,136 432,328,207 - 432,328,207Reinsurers’ share of claims incurred but not reported 48,544,853 - 48,544,853 43,298,714 - 43,298,714Reinsurers’ share of unearned premiums 131,699,740 - 131,699,740 152,377,585 - 152,377,585 Deferred policy acquisition costs 15,729,556 - 15,729,556 26,919,550 - 26,919,550 Right-of-use assets 4,432,196 - 4,432,196 6,776,228 - 6,776,228 Financial assets at fair value through statement of income (unit linked investments) 540,102,878 - 540,102,878 538,113,858 - 538,113,858 Available for sale investments 145,529,498 270,613,407 416,142,905 141,316,089 244,163,411 385,479,500 Deferred tax assets, net - 11,221,175 11,221,175 - 6,961,507 6,961,507Property and equipment 8,318,151 - 8,318,151 8,018,780 - 8,018,780 Statutory deposit - 60,000,000 60,000,000 - 20,000,000 20,000,000 Accrued income on statutory deposit - 1,572,445 1,572,445 - 1,485,295 1,485,295 Due to/from insurance operation/shareholders operation* (258,919,657) 258,919,657 (19,970,113) 19,970,113 - TOTAL ASSETS 1,875,054,565 727,229,983 2,602,284,548 1,977,141,041 357,096,182 2,334,237,223 LIABILITIES Accrued and other liabilities 159,206,174 457,819 159,663,993 150,041,674 443,891 150,485,565Surplus distribution payable 15,206,850 - 15,206,850 15,687,466 - 15,687,466 Reinsurers' balances payable 223,071,599 - 223,071,599 195,599,123 - 195,599,123 Unearned premiums 304,370,417 - 304,370,417 408,698,330 - 408,698,330 Unearned reinsurance commission 3,803,166 - 3,803,166 7,347,773 - 7,347,773 Outstanding claims 480,037,355 - 480,037,355 533,066,753 - 533,066,753Claims incurred but not reported 113,802,257 - 113,802,257 87,780,442 - 87,780,442Lease liabilities 3,780,149 - 3,780,149 5,784,231 - 5,784,231 Premium deficiency reserve 15,181,866 - 15,181,866 11,731,333 - 11,731,333 Additional premium reserves 3,638,875 - 3,638,875 1,369,320 - 1,369,320 Unit linked liabilities 520,498,876 - 520,498,876 535,415,117 - 535,415,117 End-of-service obligations 20,279,804 - 20,279,804 16,847,898 - 16,847,898Zakat and income tax - 13,116,096 13,116,096 - 28,432,189 28,432,189Accrued income payable to SAMA - 1,572,445 1,572,445 - 1,485,295 1,485,295 TOTAL LIABILITIES 1,862,877,388 15,146,360 1,878,023,748 1,969,369,460 30,361,375 1,999,730,835 EQUITY Share capital - 600,000,000 600,000,000 - 200,000,000 200,000,000 Share premium - 16,310,624 16,310,624 - 22,711,315 22,711,315 Statutory reserve - 20,743,607 20,743,607 - 20,743,607 20,743,607Retained earnings - 56,426,876 56,426,876 - 75,024,377 75,024,377Actuarial reserve for end-of–service obligations 3,828,488 - 3,828,488 3,828,488 - 3,828,488Fair value reserve on investments 8,348,689 18,602,516 26,951,205 3,943,093 8,255,508 12,198,601TOTAL EQUITY 12,177,177 712,083,623 724,260,800 7,771,581 326,734,807 334,506,388 TOTAL LIABILITIES AND EQUITY 1,875,054,565 727,229,983 2,602,284,548 1,977,141,041 357,096,182 2,334,237,223 * This item is not included in the interim statement of financial position.18. Supplementary information (continued)b) Interim statement of income SR For the nine-months period ended September 30, 2020 September 30, 2019 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalREVENUES Gross premiums written 531,838,456 - 531,838,456 813,717,206 - 813,717,206 Reinsurance premiums ceded abroad (199,481,049) - (199,481,049) (255,763,020) - (255,763,020)Reinsurance premiums ceded locally (1,280,621) - (1,280,621) (4,370,017) - (4,370,017)Excess of loss expenses (14,363,935) - (14,363,935) (4,041,069) - (4,041,069)Fee income from unit linked investments 910,785 - 910,785 872,180 - 872,180 Net premiums written 317,623,636 - 317,623,636 550,415,280 - 550,415,280 Changes in unearned premiums 104,327,913 - 104,327,913 (86,171,708) - (86,171,708)Changes in reinsurers’ share of unearned premiums (20,677,845) - (20,677,845) 36,780,016 - 36,780,016 Net premiums earned 401,273,704 - 401,273,704 501,023,588 - 501,023,588 Reinsurance commissions 7,653,958 - 7,653,958 11,918,374 - 11,918,374NET REVENUES 408,927,662 - 408,927,662 512,941,962 - 512,941,962UNDERWRITING COSTS AND EXPENSES Gross claims paid (327,436,687) - (327,436,687) (369,690,544) - (369,690,544)Surrenders and maturities (83,837,923) - (83,837,923) (109,562,404) - (109,562,404)Expenses incurred related to claims (16,899,013) - (16,899,013) (22,176,013) - (22,176,013)Reinsurers’ share of claims paid 116,954,661 - 116,954,661 109,293,109 - 109,293,109 Net claims and other benefits paid (311,218,962) - (311,218,962) (392,135,852) - (392,135,852)Changes in outstanding claims 53,029,398 - 53,029,398 (127,072,329) - (127,072,329)Changes in reinsurers’ share of outstanding claims (25,862,071) - (25,862,071) 109,181,805 - 109,181,805Change in premium deficiency reserves (3,450,533) - (3,450,533) (2,570,107) - (2,570,107)Changes in additional premium reserves (2,269,555) - (2,269,555) (395,866) - (395,866)Changes in claims incurred but not Reported (26,021,815) - (26,021,815) 16,641,257 - 16,641,257Changes in reinsurers’ share of claim incurred but not reported 5,246,139 - 5,246,139 5,977,436 - 5,977,436Net claims and other benefits incurred (310,547,399) - (310,547,399) (390,373,656) - (390,373,656)Changes in unit linked liabilities 14,916,241 - 14,916,241 24,473,841 - 24,473,841 Unrealised gain on unit linked investments 8,505,425 - 8,505,425 12,876,524 - 12,876,524 Policy acquisition costs (42,961,247) - (42,961,247) (43,203,862) - (43,203,862)Inspection and supervision fees (4,069,890) - (4,069,890) (5,781,907) - (5,781,907)TOTAL UNDERWRITING COSTS AND EXPENSES (334,156,870) - (334,156,870) (402,009,060) - (402,009,060)NET UNDERWRITING INCOME 74,770,792 - 74,770,792 110,932,902 - 110,932,902 OTHER (EXPENSES) / INCOME Provision for doubtful debts (2,304,908) - (2,304,908) (2,009,580) - (2,009,580)General and administrative expenses (99,662,869) (794,177) (100,457,046) (89,344,242) (667,319) (90,011,561)Investment income 2,925,287 5,688,404 8,613,691 2,655,025 4,803,997 7,459,022Other income 4,496,676 - 4,496,676 2,410,991 - 2,410,991 TOTAL OTHER EXPENSES (94,545,814) 4,894,227 (89,651,587) (86,287,806) 4,136,678 (82,151,128)Net (loss) / income for the period before attribution and zakat and income tax (19,775,022) 4,894,227 (14,880,795) 24,645,096 4,136,678 28,781,774Net (deficit) / surplus transferred to shareholders’ Operation 19,775,022 (19,775,022) - (22,180,586) 22,180,586 -Net (loss) / income for the period after shareholders’ appropriations - (14,880,795) (14,880,795) 2,464,510 26,317,264 28,781,774Zakat charge for the period - (4,381,259) (4,381,259) - (3,261,030) (3,261,030)Income tax credit / (charge) for the period, net - 664,553 664,553 - (3,149,645) (3,149,645)Net (loss) / income attributable to the shareholders after zakat and income tax - (18,597,501) (18,597,501) - 19,906,589 19,906,58918. Supplementary information (continued)b) Interim statement of income (continued) SR For the three-months period ended September 30, 2020 September 30, 2019 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total REVENUES Gross premiums written 113,803,412 - 113,803,412 166,405,145 - 166,405,145 Reinsurance premiums ceded abroad (33,176,898) - (33,176,898) (58,487,111) - (58,487,111)Reinsurance premiums ceded locally (211,921) - (211,921) (1,007,937) - (1,007,937)Excess of loss expenses (4,787,979) - (4,787,979) (1,010,268) - (1,010,268)Fee income from unit linked investments 316,270 - 316,270 295,835 - 295,835 Net premiums written 75,942,884 - 75,942,884 106,195,664 - 106,195,664 Changes in unearned premiums 70,456,953 - 70,456,953 91,464,200 - 91,464,200 Changes in reinsurers’ share of unearned premiums (29,872,361) - (29,872,361) (21,322,377) - (21,322,377)Net premiums earned 116,527,476 - 116,527,476 176,337,487 - 176,337,487Reinsurance commissions (545,089) - (545,089) 4,288,819 - 4,288,819NET REVENUES 115,982,387 - 115,982,387 180,626,306 - 180,626,306UNDERWRITING COSTS AND EXPENSES Gross claims paid (122,862,597) - (122,862,597) (139,615,903) - (139,615,903)Surrenders and maturities (22,233,334) - (22,233,334) (30,764,566) - (30,764,566)Expenses incurred related to claims (5,043,545) - (5,043,545) (7,442,907) - (7,442,907)Reinsurers’ share of claims paid 55,196,278 - 55,196,278 37,501,746 - 37,501,746 Net claims and other benefits paid (94,943,198) - (94,943,198) (140,321,630) - (140,321,630)Changes in outstanding claims 35,415,333 - 35,415,333 (12,825,007) - (12,825,007)Changes in reinsurers’ share of outstanding claims (32,164,854) - (32,164,854) 17,740,147 - 17,740,147Change in premium deficiency reserves 2,073,841 - 2,073,841 1,031,483 - 1,031,483 Changes in additional premium reserves (723,767) - (723,767) (191,600) - (191,600)Changes in claims incurred but not reported 3,447,217 - 3,447,217 (12,638,498) - (12,638,498)Changes in reinsurers’ share of claim incurred but not reported (4,601,413) - (4,601,413) 9,818,251 - 9,818,251Net claims and other benefits incurred (91,496,841) - (91,496,841) (137,386,855) - (137,386,855)Changes in unit linked liabilities (3,935,113) - (3,935,113) 9,368,672 - 9,368,672 Unrealised gain / (loss) on unit linked investments 10,677,945 - 10,677,945 (1,210,233) - (1,210,233)Policy acquisition costs (11,544,003) - (11,544,003) (11,043,518) - (11,043,518)Inspection and supervision fees (906,726) - (906,726) (1,381,191) - (1,381,191)TOTAL UNDERWRITING COSTS AND EXPENSES (97,204,738) - (97,204,738) (141,653,125) - (141,653,125)NET UNDERWRITING INCOME 18,777,649 - 18,777,649 38,973,181 - 38,973,181OTHER (EXPENSES) / INCOME Provision for doubtful debts (882,524) - (882,524) (2,190,228) - (2,190,228)General and administrative expenses (31,269,879) (256,119) (31,525,998) (30,108,529) (272,479) (30,381,008)Investment income 883,231 1,999,811 2,883,042 888,759 1,584,876 2,473,635Other income 445,252 - 445,252 218,688 - 218,688TOTAL OTHER EXPENSES (30,823,920) 1,743,692 (29,080,228) (31,191,310) 1,312,397 (29,878,913)Net income for the period before attribution and zakat and income tax (12,046,271) 1,743,692 (10,302,579) 7,781,871 1,312,397 9,094,268Net surplus transferred to shareholders’ Operation 12,046,271 (12,046,271) - (7,003,684) 7,003,684 -Net income for the period after shareholders’ appropriations - (10,302,579) (10,302,579) 778,187 8,316,081 9,094,268Zakat charge for the period - (2,222,552) (2,222,552) - (1,161,512) (1,161,512)Income tax credit / (charge) for the period, net - 174,476 174,476 - (1,023,008) (1,023,008)Net income attributable to the shareholders after zakat and income tax (12,350,655) (12,350,655) - 6,131,561 6,131,56118. Supplementary information (continued) c) Interim statement of comprehensive income SR For the nine-months period ended September 30, 2020 September 30, 2019 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Net (loss) / income for the period after zakat and income tax - (18,597,501) (18,597,501) 2,464,510 19,906,589 22,371,099Other comprehensive income / (loss) Items that are or may be reclassified to statements of income in subsequent periods Available for sale investments: - Net change in fair value 4,405,596 6,751,893 11,157,489 8,229,737 15,388,680 23,618,417- Deferred tax relating to change in fair value 4,311,991 (716,876) 3,595,115 (873,784) (1,633,878) (2,507,662)Total comprehensive income for the period 8,717,587 (12,562,484) (3,844,897) 9,820,463 33,661,391 43,481,854Reconciliation: Less: Net income attributable to insurance Operations - (2,464,510)Total comprehensive income for the period attributable to the shareholders (3,844,897) 41,017,344 SR For the three-months period ended September 30, 2020 September 30, 2019 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Net (loss) / income for the period after zakat and income tax - (12,350,655) (12,350,655) 778,187 6,131,561 6,909,748Other comprehensive income / (loss) Items that are or may be reclassified to statements of income in subsequent periods Available for sale investments: - Net change in fair value 1,194,753 2,234,428 3,429,181 1,496,014 2,633,968 4,129,982 - Deferred tax relating to change in fair value 601,788 (237,698) 364,090 (158,838) (279,659) (438,497)Total comprehensive income for the period 1,796,541 (10,353,925) (8,557,384) 2,115,363 8,485,870 10,601,233Reconciliation: Less: Net income attributable to insurance Operations - (778,187)Total comprehensive income for the period attributable to the shareholders (8,557,384) 9,823,04618. Supplementary information (continued)d) Interim statement of cash flows SR For the nine-months period ended September 30, 2020 September 30, 2019 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalCASH FLOWS FROM OPERATING ACTIVITIES Net (loss) / income for the period before attribution and zakat and income tax - (14,880,795) (14,880,795) 2,464,510 26,317,264 28,781,774 Adjustments for non-cash items and other items: Depreciation of property and equipment 2,112,659 - 2,112,659 417,577 - 417,577Amortisation of Right-of-use assets 2,344,032 - 2,344,032 (7,551,498)- (7,551,498) Amortisation of investments premium 192,187 301,897 494,084 199,461 240,504 439,965 Reversal of doubtful reinsurance receivables (127,202) - (127,202) (657,139) - (657,139) Gain on sale of property and equipment - - - (33,075) - (33,075) Provision for doubtful receivables and write-offs 1,860,647 - 1,860,647 2,634,110 - 2,634,110 Provision for end-of-service obligations 3,595,982 - 3,595,982 3,107,505 - 3,107,505 Unrealised gain on unit linked investments (8,505,425) - (8,505,425) (12,876,524) - (12,876,524)Finance cost on lease liabilities 357,705 - 357,705 231,120 231,120 Shareholders’ appropriation from insurance operations’ surplus* (19,775,022) 19,775,022 - 22,180,586 (22,180,586) - (17,944,437) 5,196,124 (12,748,313)10,116,633 4,377,182 14,493,815Changes in operating assets and liabilities: Reinsurers’ balance receivable (13,591,740) - (13,591,740) (4,590,250) - (4,590,250)Premium receivable (24,630,927) - (24,630,927) (46,860,119) - (46,860,119)Reinsurers’ share of unearned premiums 20,677,845 - 20,677,845 (36,780,016) - (36,780,016)Reinsurers’ share of outstanding claims 25,862,071 - 25,862,071 (111,527,883) - (111,527,883)Reinsurers’ share of claims incurred but not reported (5,246,139) - (5,246,139) (3,631,358) - (3,631,358)Deferred policy acquisition costs 11,189,994 - 11,189,994 (6,849,307) - (6,849,307)Unit linked investments 6,516,405 - 6,516,405 34,122,432 - 34,122,432 Prepaid expenses and other assets (34,035,041) (6,424,589) (40,459,630) (15,188,810) (5,647,782) (20,836,592)Accrued and other liabilities 9,164,500 13,928 9,178,428 22,932,735 23,699 22,956,434Reinsurers' balances payable 27,472,476 - 27,472,476 122,803,823 - 122,803,823 Unearned premiums (104,327,913) - (104,327,913) 86,171,708 - 86,171,708 Unearned reinsurance commission (3,544,607) - (3,544,607) (2,115,488) - (2,115,488)Lease liabilities - - - 8,345,419 - 8,345,419Unit linked liabilities (14,916,241) - (14,916,241) (24,473,841) - (24,473,841)Outstanding claims (53,029,398) - (53,029,398) 131,658,942 - 131,658,942 Claims incurred but not reported 26,021,815 - 26,021,815 (21,227,870) - (21,227,870)Premium deficiency reserves 3,450,533 - 3,450,533 2,570,107 - 2,570,107 Additional premium reserves 2,269,555 - 2,269,555 395,866 - 395,866 (138,641,249) (1,214,537) (139,855,786) 145,872,723 (1,246,901) 144,625,822End-of-service obligations paid (164,076) - (164,076) (1,199,278) - (1,199,278)Lease rental paid (2,361,787) (2,361,787) (2,801,707) (2,801,707)Surplus paid to policyholders (480,616) - (480,616) (594,949) - (594,949)Zakat and income tax paid - (19,697,352) (19,697,352) - (4,635,822) (4,635,822)Net cash (used in) / generated from operating activities (141,647,728) (20,911,889) (162,559,617) 141,276,789 (5,882,723) 135,394,066 CASH FLOWS FROM INVESTING ACTIVITIES Additions in available for sale investments - (20,000,000) (20,000,000) - (30,652,614) (30,652,614)Proceed from sale of available for sale investments - - - 5,000,000 18,687,500 23,687,500 Proceeds from sale of property and equipment - - - 33,075 - 33,075Payment for purchase of property and equipment (2,412,030) - (2,412,030) (3,094,740) - (3,094,740)Net cash (used in) / generated from investing activities (2,412,030) (20,000,000) (22,412,030) 1,938,335 (11,965,114) (10,026,779)CASH FLOWS FROM FINANCING ACTIVITY Due from / to (insurance operations / shareholder operations)* 258,724,566 (258,724,566) - (92,134,934) 92,134,934 - Increase in statutory deposit - (40,000,000) (40,000,000) - - - Transaction cost related to increase in share capital - (6,400,691) (6,400,691) - - - Increase in share capital - 400,000,000 400,000,000 - - - Net cash used in financing activity 258,724,566 94,874,743 353,599,309 (92,134,934) 92,134,934 - Net change in cash and cash equivalents 114,664,808 53,962,854 168,627,662 51,080,190 74,287,097 125,367,287 Cash and cash equivalents at the beginning of the period 87,046,426 61,819,191 148,865,617 47,722,503 45,412,035 93,134,538 Cash and cash equivalents at the end of the Period 201,711,234 115,782,045 317,493,279 98,802,693 119,699,132 218,501,825 NON-CASH INFORMATION: Change in fair value of available for sale investment (4,405,596) (6,751,893) (11,157,489) (8,229,737) (15,388,680) (23,618,417)Deferred income tax (4,311,991) 716,876 (3,595,115) 873,784 1,633,878 2,507,662* These items are not included in the interim statement of cash flows | 18 |
